China’s toy industry is riding a new wave of global demand, led by innovative products that combine artificial intelligence, interactive learning, and cultural creativity. Export orders for AI-enabled toys are fully booked through the first quarter of next year, bringing fresh momentum to China’s foreign trade.
“Innovation has become the biggest request from overseas buyers this year. Toys with AI functions sell out as soon as they reach the port,” said Zhan Junyan, General Manager of Guangdong Qman Toys Industry Co., Ltd. The company’s AI smart pets and programming robots have seen exports surge by over 200 percent year-on-year.
In Chenghai District of Shantou, widely known as China’s “toy capital,” factories are working around the clock. The region contributes nearly 60 percent of the world’s toy output, and the share of AI-powered toys in exports has jumped from less than 10 percent last year to about 30 percent today. According to the General Administration of Customs, China exported over 50 billion yuan ($7 billion) worth of toys and holiday goods in the first three quarters of the year, reaching more than 200 countries and regions.
From “Made in China” to “Created in China”
A major force behind this growth is the rise of the “Guochao” trend, which blends modern design with traditional Chinese culture. More toys now draw inspiration from elements such as martial arts, ancient mythology, and calligraphy, giving foreign consumers a fresh taste of Chinese aesthetics.
“Instead of doing simple contract manufacturing, we now focus on creative design and AI algorithms to enhance interactivity for different age groups,” said Zhou Yu, chairman of a Guangzhou-based toy firm. His company expanded AI toy production lines from two to five this year and doubled its R&D team.
One standout example is a kung fu–inspired AI mecha that went viral on social media overseas, with over five million views. “We embedded Chinese martial arts movements into AI chips so children can control the robot through gestures while learning basic Chinese commands,” said the designer.
Experts from the Chinese Association for Artificial Intelligence believe that China’s toy industry is shifting from traditional manufacturing to intelligent production, gaining a new edge through the fusion of culture and technology.
Policies and Innovation Powering the Future
Government policies are also fueling the industry’s transformation. In September, Guangdong Province unveiled an action plan to boost AI adoption in toy production through 2027. The plan targets 100 billion yuan in industry revenue, aims for AI toys to exceed 30 percent of total output, and seeks to establish globally competitive clusters in Shantou, Dongguan, and Shenzhen.
Technological advances — including voice recognition, computer vision, and affective computing — are accelerating product innovation. With stronger R&D investment and growing global recognition, Chinese toy manufacturers are redefining the concept of play.
As they evolve from mass producers to creative innovators, Chinese toymakers are proving that the future of global toys lies in a powerful blend of technology, education, and cultural storytelling — turning “Made in China” into truly “Created in China.”
